Insurance is one of the most rigid (and profitable) industries still in business. They do not take unnecessary risks, especially in today's volatile markets. They have managed to make money over the years with prudent investment of customer premiums and by (almost) accurately analyzing risks. After all, where there are risks, there will be insurance.
"Insurance companies should harness the winds of increased CRM adoption, ride it and grow with it."
But with changing times come new business demands, laws and ways of operation. The lengthy process one has to go for claims and the dismal rate of success made insurance one of the most cynical business areas. On top of it, managing clientele data has become a huge problem, a sour spot for many industries and insurance is no exception. Having molds of data is no big deal, but what you do with it can be the deal-breaker.
With new products (mostly in life insurance, non-life, property, general and casualty insurance) hitting the market, a huge customer data wind is incoming.
How can insurance companies ride the wind (wind is faster than waves) and manage customers so as to effectively retain them? Cloud Insurance CRM Solution is their best bet.
Learn how TATA AIA enjoys huge process improvements with CRMNEXT.
Why CRM in insurance is now crucial:
1. To manage database efficiently
Insurance is a purely clientele reliant industry. Every successful insurance company has a huge database of existing and potential clients who all have to be managed on a day to day basis. In a highly competitive industry as insurance, being able to share this information fluidly with different arms of the organization (sales, customer service, billing and so on) is a crucial aspect that a company can ill afford not to have.
Making this crucial customer related data available to these various departments in the most cost-effective, timely and efficient manner will ultimately determine the bottom-line. Insurance companies with an eye on the future should, thus, invest in a highly robust insurance CRM solution.
2. To manage agents and intermediaries
Agents and intermediaries form the backbone of insurance sales and reach. Insurance CRM can be a valuable aid in segmenting them into separate value bands for better relationship & referral management. Digital Insurance CRM also helps in getting a holistic 360 view in a single system (& window). Better management translates into better loyalty.
3. To deliver great customer Service
Even though insurance companies struggle to provide the highest level of customer satisfaction, having no grievances cannot be 100% reality (just as there cannot be 100% claim rates). However this should not stop insurance companies from striving to achieve market best closure rates.
The leading customer complaints often arise from delayed or non-claim payments, inefficient customer service and mountains of paperwork with which customers have to deal. With the help of cloud insurance CRM, you can eliminate manual (and paper processes) thereby, significantly increasing accuracy and more importantly process speed. This, in turn, will improve customer satisfaction and gain you a bigger piece of the market share eventually.
4. To adapt to changing audience dynamics
Today, the customer is more informed than ever. They know all the choices available to them and they will not be swayed by simple birthday greeting cards. They can even login to online comparison portals and check out the best market rates. Bad reviews are not spared.
To entice this new, savvy clientele, insurance companies have to go the extra mile and based on e-KYC (Know Your Customer) profile information, provide packages that speak to the individual as opposed to the masses.
5. To conduct faster and accurate risk assessment
Additionally, risk management has become a thorn on the side of many insurance companies. With an increased customer base comes increased risks. Where only a few years ago, risk management was done by analyst who had to sort through hours and hours of analysis, now a Digital CRM solution can do that in a matter of minutes and give the sales team a definitive customer analysis thus helping them make clear decisions faster.
Thus, insurance firms should stop being laggards. They should surrender to the winds of increased CRM adoption, ride it and grow with it.